When you want something badly, you must have the patience and tenacity to get it. It is like chasing after a fair lady. You wait, take action, and wait again.
The waiting game was more or less the same for the Metro Kajang group, except that when it involves a sizeable land deal with complex issues, it takes a lot more effort.
Finally, on May 5, the property development company dubbed the “Kajang King” got its prize: all 273 acres of prime freehold land (Paradise Estate), which is 2.5km from the Kajang town centre and is accessible via the SILK Highway and Jalan Reko.
It's a long story but suffice to say, Metro Kajang Holdings Bhd executive chairman Datuk Alex Chen is happy to see the deal finally sealed. The last 96% of undivided share of 12 parcels of the freehold land was sold for RM77.94mil. The group had bought the first 4% of the undivided share for RM2mil more than five years ago.
Metro Kajang was not the only company eyeing this piece of land, said to be the largest single piece of land near the town centre. There were plenty of suitors, mainly public-listed companies and also big-time developers.
The crux of the problem, as Chen recalled, was the difficulty in getting all the parcel owners to agree to sell and it also involved family disputes.
“This piece of land is in a very strategic location and it is even more worthwhile for us to buy as there are no more such a big piece so near the Kajang town centre,” said Chen, adding that there was a shortage of prime land in Kajang as much of the surrounding areas had been developed.
The break came when a very old parcel owner who is also Chen's friend finally agreed to sell his 4% stake for about RM220,000 per acre. Although Chen could not do anything with that small “interest,” it was, in his own words, like “using a string to tie up the elephant.”
The strategy worked as other suitors left. The next 86% of the undivided share was sold for RM280,000 per acre and the remaining 10% at the market price of RM400,000 per acre.
Obviously, the last few parcel owners made the most but it was still a price the group was prepared to pay, as the returns would be worth all the money and hardship.
Chen wants to build 3,500 units of high-end homes (semi-detached houses, bungalows, super links) as well as commercial properties on the land to be turned into a gated and guarded, integrated township, tentatively called Kajang 2.
Indeed, with so much competition especially in the Kajang area, the latest land acquisition would not only beef up the public-listed company's land bank but also enable it to create its niche high-end development and compete more effectively.
Being an established player in Kajang and having an 8% per annum population growth in Kajang (it has one of the highest population growth in the country) the new project could count on ready demand.
Although the town centre is still quite congested, many people have made Kajang their home. There are also nine universities and about five golf courses in the area. It is also within 10km from Putrajaya and Cyberjaya.
Having launched high-end projects like the Zen Park gated and guarded community project in Cheras and Phase 10 in Taman Bukit Mewah, Kajang, it is shedding its traditional image of a mere township developer and gaining a reputation as a niche, lifestyle player.
In fact, Metro Kajang, as the biggest developer in Kajang and Semenyih, had built over 1,000 residential and commercial units in Kajang over the past 20 years.
Its 295-acre Pelangi Semenyih, a major integrated township has achieved over 90% sales. Most of the residential properties there are in the affordable price range of below RM180,000 each.
Thus, going into more high-end projects would make Metro Kajang an “all rounder” so that it is not dependent on any single market.
“We are constantly looking for land at reasonable prices but we do not rush in to buy at just any prices. We will conduct thorough studies to ensure the viability of the land and its costs,” added Chen.
By The Star (by S.C.Cheah)
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